Nova Scotia's trade strategy with China

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Nova Scotia's trade strategy with China

Guo, Zhenya

Date: 2014

Type: Text

Abstract:

This paper first takes a regional approach, investigating the trade strategy of seven other Canadian provinces along with China’s major trade partners (the US, the EU and Australia). It also studies New Zealand as its economic structure is similar to Nova Scotia’s and it has been successful in expanding trade with China. My research indicates that all other jurisdictions have experienced substantial growth in trading with China over the past decade. All jurisdictions are targeting China for foreign direct investment and its growing middle class for exporting opportunities. They are building their China capabilities and developing relationships with Chinese governments, businesses and communities to expand trade. They are taking a regional approach to enter the Chinese market and some of them are marketing their unique value propositions to China through consistent branding. There is still much room to grow, as current trade is primarily concentrating on exchanging China’s goods with raw materials and natural resources from its trade partners. A thorough analysis follows, based on Nova Scotia’s unique conditions and the major challenges it faces in expanding trade with China. This paper proposes a four-point strategy for Nova Scotia in order to expand its trade with China: 1) based on its global competitive advantage in marine industries, Nova Scotia should target the Shandong Byland city cluster to capitalize on the opportunities presented from the development of its maritime economy; 2) Nova Scotia should build its China capabilities in order to capitalize on business opportunities in China; 3) Nova Scotia should build long-term Guanxi (good relations) with Chinese governments, businesses and communities for success; and 4) Nova Scotia should develop a new brand so that the province can be considered by China as a partner of choice for investment and trade.